Investment in CONtv Joint Venture

12 Months Ended

Dec. 31, 2015

Investment In Contv Joint Venture

Investment in CONtv Joint Venture

Note 4 – Investment in CONtv Joint Venture

On August 27, 2014, the Company entered into a joint venture and executed an Operating Agreement with Cinedigm, ROAR and Bristol Capital. The Company owned a 47.50% interest in the newly formed entity, CONtv. The Company was accounting for the interest in the joint venture utilizing the equity method of accounting.

On November 16, 2015, the Company entered that certain A&R Operating Agreement by and among, the Company, Cinedigm, ROAR and Bristol Capital, pursuant to which the Company’s interest in CONtv was reduced to a non-dilutable 10% membership interest. Such agreement was deemed effective on the execution date; however, Cinedigm agreed to the Company recognizing only 10% of the losses from the period July 1, 2015 through December 31, 2015. Pursuant to the A&R Operating Agreement, the Company is only obligated to fund on-going costs in the amount of $25,000 in cash on an on-going monthly basis for a period of 12 months following the effective date.

For the years ended December 31, 2015 and 2014, the Company recognized $1,324,727 and $460,747 in losses from this venture, respectively.

As of December 31, 2015 and 2014, the investment in CONtv was as follows:

Investment in CONtv – December 31, 2014	$	-
Investment into CONtv		578,254
Loss on CONtv for the year ended December 31, 2014		(460,747	)
Investment in CONtv – December 31, 2014		117,507
Investment into CONtv		1,207,220
Loss on CONtv for the year ended December 31, 2015		(1,324,727	)
Investment in CONtv – December 31, 2015	$	-

As of December 31, 2015 and 2014, the Company has a balance due to CONtv of $111,741 and $313,412, respectively.